- Nickel Mines (NIC) has entered a trading halt ahead of a capital raise
- The company is in the process of earning a 70 per cent interest in the Oracle Nickel project in Indonesia
- It has also commenced the commissioning phase at its majority-owned Angel nickel project and is undertaking infrastructure and drilling works at the Hengjaya mine
- At this stage, it’s unclear how much money Nickel Mines plans to raise or where the funds will be allocated but these details are expected by Friday, February 11
- Nickel Mines last traded at $1.46 on Tuesday, February 8
Nickel Mines (NIC) has entered a trading halt regarding a capital raise.
The company requested the trading halt remains in place until it’s prepared to release an announcement to the market about the completion of the raise and the commencement of trading on Friday, February 11.
It isn’t yet clear how much the materials stock is aiming to raise nor how it will spend the money.
Nickel Mines’ principal operations include the 80 per cent-owned Hengjaya Nickel and Ranger Nickel rotary kiln electric furnace (‘RKEF) projects located within the Indonesia Morowali Industrial Park (IMIP), and the 80 per cent-owned Hengjaya nickel mine.
During the December quarter, the company agreed to buy a 70 per cent interest in the Oracle nickel project which is a new development project that commenced construction within the IMIP and comprises four RKEF lines with an annual production capacity of 36,000 tonnes of nickel metal.
To gain the first 10 per cent stake, Nickel Mines needs to pay Oracle Nickel US$23 million (A$33.1 million) by March 31 2022 and a further US$106 million (A$148.1 million) by June 30 2022 to purchase an additional 20 per cent and take its interest in the project to 30 per cent. The remaining percentage will be payable by the end of the year.
Additionally, Nickel Mines announced last month its 80 per cent-owned Angel nickel project had commenced the commissioning phase with all lines expected to be producing nickel pig iron by the end of April this year.
The company is also conducting infrastructure works on access roads and a solar project, as well as drilling at the Hengjaya project.
With a multitude of activities currently underway and planned, it can’t be certain where exactly the upcoming capital raise will be used.
Nickel Mines last traded at $1.46 on Tuesday, February 8.